Market Summary - February 23, 2026
Index Performance
| Index | Change | % Change | Last Value |
|---|---|---|---|
| DJ Industrials | -672.20 | 1.35% | 48,953 |
| S&P 500 | -45.02 | 0.65% | 6,864 |
| Nasdaq | -131.55 | 0.57% | 22,754 |
| Russell 2000 | -36.47 | 1.37% | 2,627 |
Market Overview
U.S. stocks opened mixed but quickly turned lower due to a combination of macroeconomic factors and sector-specific issues. Trade uncertainty is a significant concern, particularly with the EU planning to halt its trade deal with the U.S. President Trump announced an increase in global tariffs from 10% to 15% following a Supreme Court ruling that voided most of his previously imposed tariffs. This ruling was based on the court's finding that the emergency law used to impose these tariffs was not applicable.
Additionally, geopolitical tensions are rising as President Trump urged Iran to negotiate on its nuclear program, warning of consequences if talks fail. In Mexico, the assassination of cartel leader Nemesio Oseguera Cervantes has led to widespread violence and disruption.
Sector Performance
The Financial sector saw the most significant decline, with major banks and consumer finance companies falling due to concerns over their exposure to software lending. The Software sector also faced heavy losses, with the IGV index dropping over 4%, driven by declines in major companies like Salesforce, Oracle, and Microsoft, amid ongoing fears related to AI risks.
Retailers that had previously benefited from the Supreme Court's tariff ruling are now experiencing declines following Trump's new tariff announcement. Precious metals, however, showed early strength, with gold and silver prices rising.
Economic Data
U.S. Factory Orders for December fell by 0.7%, slightly worse than the expected 0.6% decline. Notably, core capital expenditures were revised upward, indicating some resilience in certain sectors.
Sector Movers
Utilities
Dominion reported mostly in-line Q4 results, while CNP announced a private offering of convertible bonds. PPL is planning to sell equity units in a public offering.
Paper & Packaging
Shares in this sector fell after a report indicated a drop in containerboard prices, impacting companies like IP and SW.
Apps Software
Jefferies downgraded several software stocks due to persistent AI risks, with many stocks underperforming the IGV index year-to-date.
Optical Sector
Shares in the optical sector rose as JP Morgan forecasted a multi-year upcycle driven by increased spending from major U.S. cloud service providers.
Stock Highlights
Gainers
- ACLX +77%: Acquired by GILD for $115 per share.
- DPZ +3%: Strong comparable sales growth despite a slight earnings miss.
- VNDA +44%: FDA approval for a new antipsychotic drug.
Losers
- APP -8%: Ongoing SEC investigation affecting stock performance.
- GOSS -80%: Failed Phase 3 trial for a drug.
- NKE -4%: Decline following tariff announcement.
Conclusion
The market is currently facing significant headwinds from geopolitical tensions, trade uncertainties, and sector-specific challenges, particularly in technology and finance. Investors are advised to remain cautious as these factors continue to evolve.